PROBLEM SOLVING

1. A is using periodic inventory system. For the year, its total purchases amounted to P250,000. Its unsold merchandise at the end of the year has a cost of P5,000 which is 80% of its beginning inventory. A's cost of sales is:

2. B's purchases per purchase invoice is P150,000. The purchase discount is 2/10; n/30. Freight is P500, FOB shipping point, freight collect. The net purchase amounts under net method is:

3. The purchase invoice shows the amount of P250,000, 2/10; 1/20; n/30, FOB destination, freight collect, P200. If the account is paid 15 days after the invoice date, the net payment should be:

4. C purchased merchandise for P5,000 and paid P200 for freight, FOB destination, freight collect. The merchandise was sold at 120% of cost. The gross profit is:

5. The total purchase is P1,176, net of 2% cash discount. Unsold portion of purchase is P176. The sale is at mark-up of 10%. The gross profit is:

6. The term of a P300,000 purchase is 2/30; n/60, FOB shipping point, freight prepaid, P300. If the account is paid on the 20th day from the invoice date, the total payment would be:

7. The following items are taken from the records of D Enterprise: Purchases, P10,000; Sales discount, P1,000; Purchase returns, P100; Freight-in, P400; Sales, P15,000; Freight-out, P500. No beginning and ending inventory. The gross profit is:

8. The purchases of G has a list price of P250,000; terms 10%, 5%; n/30. To record the purchase, the journal entry would be:

9. L paid P500 freight, FOB shipping point, on its sales on account to Y. The journal entry in both books of L and Y would be:

10. M purchased on account, P150,000. Inspection of merchandise revealed that P20,000 worth of merchandise are defective. M received a credit memo from supplier for P20,000 damage. The journal entry in the books of M to record the credit memo is:*

11. N is selling at list price of P80,000, 5%; 1/30; n/60. To record the sales, the debit would be:

12. O sold merchandise at list price of P150,000, 10%; 1/10; n/30. If the account is collected 8 days from the invoice date, O will receive:

13. P sold merchandise at list price of P250,000, 10%, 5%; n/30. Part of the sale amounting to P10,000 was returned due to defect. The amount to be collected is:

14. The cost of sale is P250,000. Total purchases amounted to P300,000 which increased the total goods available for sale to P310,000. The ending inventory is:

15. The gross profit is P100,000; goods available for sale, P1,100,000; beginning inventory, P100,000; purchases, P1,000,000; and sales, P1,000,000. The ending inventory is:

16. Based on the following information, determine the amount of gross purchases: Merchandise inventory, beginning, P85,300; Cost of merchandise available for sale. P550,000; Merchandise inventory, end, P60,400; Cost of merchandise sold, P489,600; Purchase returns and allowances, P3,000.*

17. The following transactions of Vice Guapo occurred in the order given: (a) Sold merchandise to Darren, P30,000, Terms: 2/15, n/30; FOB Shipping Point, Freight Prepaid; (b) Darren returned defective merchandise with sales price of P1,500; (c) Paid transportation cost for the above sale, P450; (d) After 12 days, collected in full the account of Darren. From the above transactions, what is the amount of net sales to be recognized by Vice Guapo from the sales made to Darren?

18. The following information were taken from the records of Santa Fe Trading: Sales, P440,000; Total operating expenses, P160,000; Cost of merchandise sold, P200,000; Purchases, P110,000; Purchase returns and allowances, P2,000; Sales returns and allowances, P3,000. Based on the data given, what is the net income of Santa Fe Trading?

19. The following data pertain to the two-year operation of F Business: Year 1 - Sales, P200,000; Purchases, P250,000; Ending Inventory, P90,000. Year 2 - Sales, P250,000; Purchases, P150,000; Ending Inventory, P40,000. F's gross profit for year 2 is:

20. The following data pertains to the inventory of Q: Purchases, P1,200,000; Purchase returns, P200,000; Purchase discounts, P20,000; Freight-in, P250,000; Freight-out, P300,000; Cost of sale, P930,000. Actual inventory per count, P275,000. The actual physical count indicates a shortage or an overage of:

21. H paid freight for P200 on its purchase on account from X, FOB shipping point. The journal entry in the books of H to record this transaction would be: